Perrigo rejects Mylan offer on undervaluation and 'troubling' corporate governance
Ireland-based drug maker Perrigo has again rejected generic rival Mylan's unsolicited takeover offer, citing worries about "negative pressures" facing its suitor's shares as well as its "troubling" corporate governance.
3i Infrastructure
320.00p
16:40 01/11/24
Financial Services
16,663.85
17:14 01/11/24
FTSE 250
20,479.74
17:14 01/11/24
FTSE 350
4,508.38
17:14 01/11/24
FTSE All-Share
4,465.61
16:54 01/11/24
Mylan Inc.
$0.00
19:30 08/12/22
Nasdaq 100
20,033.14
12:15 01/11/24
Perrigo Company plc
$26.09
11:10 01/11/24
NYSE-listed Perrigo said its board had unanimously rebuffed the offer as it "substantially undervalues the company and does not adequately compensate shareholders for Perrigo’s exceptional growth prospects".
Perrigo added that the Offer also would expose Perrigo shareholders to "significant financial risks" and Mylan’s "troubling corporate governance values".
Specifically, it noted that Mylan's "exceptionally shareholder-unfriendly" behaviour in the recent past, namely the self-proclaimed “bullet proof” anti-takeover defenses that saw the recent offer by Teva "contributing to the destruction of approximately $14bn in potential shareholder value creation and preventing shareholders from receiving a 48% acquisition premium".
"We believe that these anti-takeover measures and precedent of exceptionally shareholder-unfriendly behaviors speak volumes about the likelihood of Mylan shareholders ever realizing a takeover premium."
On Monday, Mylan officially launched a formal offer, after its Ireland-headquartered target rejected previous offers on the basis that they were too low.
Under the terms of the offer, which is due to expire on 13 November, Perrigo shareholders would receive $75 in cash and 2.3 Mylan shares for each Perrigo share, and leave Perrigo shareholders ownign around 40% of the combined company.